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11/14/1995 - City Council Special r MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota November 14, 1995 A special meeting of the Eagan City Council was held on Tuesday, November 14, 1995 at 5:00 p.m. at the Eagan Municipal Center. Present were Mayor Egan and Councilmembers Awada, Wachter, Masin and Hunter. Also present were City Administrator Tom Hedges, Director of Public Works Tom Colbert, Community Development Director Peggy Reichert, Park & Recreation Director Ken Vraa, and Finance Director Gene VanOverbeke. CIVIC ARENA OPERATIONS Parks and Recreation Director Vraa noted that over 400 people signed up for the skating school. He reviewed the open skating sessions to date, noting that Friday nights have been the slowest. He indicated the Council may want to eliminate the Friday night open skating to expand the Loam to Skate Program. He needs direction from the Council soon because the newsletter is going out soon. Councilmember Wachter stated he doesn't like to see the schedule changed after only being open for a month and a half. Awada concurred, stating she feels there should be more open sessions. Councilmember Hunter suggested it should stay the way it is long enough to see If it is a trend. Mayor Egan concurred, and suggested it be reviewed next year. Parks and Recreation Director Vraa then reviewed the use of the arena by the Minnesota Moose, noting they are committed to the facility. OVERVIEW OF TRANSPORTATION IMPROVEMENTS FOR YANKEE DOODLE ROAD/PILOT KNOB ROAD FOUR QUADRANT AREA Administrator Hedges reviewed the presentation outline. Director of Public Works Colbert introduced the consulting engineering team, and reviewed the background of these improvements. He indicated that in order to get the rezoning and Comprehensive Guide Plan amendment for the O'Neill property, the Met Council put a cap of 8,700 vehicle trips per day on traffic generated by the O'Neill parcel based on the limited capacity of the existing roadway system. In order for that property to be developed with a higher intensity use, significant roadway improvements have to be done. The Met Council would not approve a Comprehensive Guide Plan amendment allowing greater intensity without a corridor transportation study for the Yankee Doodle corridor. It was at that time that the ring road concept was developed. These roadway improvements were estimated at $11.5 million for the ultimate 2015 year development scenario. The City's share of these improvements would be $8.5 million, after deducting federal, state and county contributions. The initial concept considered by the City Council last year was to split that cost evenly between a property tax mill levy, special assessments to benefitted properties, and the major street fund. Ferrol Robinson, of Strgar, Roscoe Fausch, Inc. gave a presentation on the proposed public improvements and internal Improvements for the Opus project. Some of the items reviewed were the extension of Denmark to the north which would turn into Northwood Drive and connect with Lexington Avenue; double left turn lanes at the intersection of Yankee Doodle Road and Pilot Knob Road; widening of the bridge on Yankee Doodle Road across 35E; a right-in/right-out for cars In the Park and Ride lot; revision of the ramps to 35E; a four lane divided roadway on Lexington Avenue; and moving the intersection of Pilot Knob Road and the entrance to Loral. He noted there Is no time frame identified for these improvements; it is simply a plan that will be in place to be used when it is needed. Director of Public Works Colbert noted that the improvement of Lexington Avenue may be eligible for federal funds, so they will try to get it funded for 1998. Mr. Robinson then summarized the improvements that are necessary for the Opus proposal. Director of Public Works Colbert noted that the internal improvements are expected to be the full responsibility of the development of the Opus property and the property to the north. In addition to the internal improvements, the external improvements consist of the Yankee Doodle corridor improvements, the 35E Interchange modifications, and interim improvements to Lexington Avenue. The estimated total cost of the 1996 improvements estimated for EAGAN SPECIAL CITY COUNCIL MINUTES; NOVEMBER 14, 1995 PAGE 2 the Opus development Is $8.6 million which includes Indirect costs but not right-of-way acquisition which might be somewhere In the range of 3%. Director of Pubic Works Colbert then reviewed the potential funding sources. He reviewed state, county and local funding. He noted that the county will participate only on county roads at 55% of the cost of roadway improvements, and 50% of the cost of signals. The local participation Is proposed to come from the developer, special assessments, major street fund, and general property tax levy. He reviewed a breakdown of the local funding sources. Discussion followed concerning state funding of the 35E ramp improvements. The Impact of a negative decision on the Country Joe lawsuit on the major street fund was discussed. He also reviewed several scenarios as to how to assess special assessments for this project and how much to assess per square foot. He noted that at 5 cents per square foot, special assessments would generate just under $300,000. Discussion followed on when the Duckwood Drive interchange would be Installed and the costs associated with it. Director of Public Works Colbert reviewed three scenarios for participation by Opus. They have made the argument that Yankee Doodle Road is being built with excess capacity over and above what is required for their development so they shouldn't have to pay 100% of the cost. Finance Director VanOverbeke reviewed the major street fund projected through 1999. Considerable discussion followed concerning funding considerations. Director of Public Works Colbert reviewed the policy considerations, Including whether there should be any area-wide special assessments to help finance this project, and if so, how much and who should be included; how much Opus should be required to contribute to the Yankee Doodle corridor Improvements, 35E modifications, Lexington Avenue improvement, and streetscape improvements; and how the remaining unfunded costs should be financed. Considerable discussion followed concerning the assessments and sustaining benefit. Administrator Hedges reviewed the pros and cons of having one developer do this project. Councilmember Awada suggested it would make more sense to do the Duckwood bridge now rather than later and having just one area-wide assessment. Councilmember Hunter responded that the city would get criticism for overspending. Some discussion followed concerning the timing and funding of the bridge construction. Mayor Egan stated he feels Opus should pay the maximum the city can get from them for the off-site improvements as a result of reasonable negotiations with them so they aren't discouraged from going forward with this project. Councilmember Wachter also noted that those Improvements are very beneficial to the Opus project. Area-wide special assessments were discussed in relation to the timing of each phase and it was felt special assessments should not be utilized with this first phase of improvements, but considered on an area wide basis with future phases. Considerable discussion followed concerning how much Opus should be responsible for. Mayor Egan stated he feels Opus should pay the entire amount. After speaking with the Community Development Director, he feels the city can extract most of what is needed in terms of roadway and infrastructure Improvements without the loss of a lot of land use efficiency, so he isn't as concerned about losing Opus as a single developer as he was earlier. He would Ike to Incorporate both the north and south bridges as early as possible, study the feasibility of doing a broad area-wide assessment to minimize as much as possible the amount to be taken out of the major street fund. Councilmember Wachter concurred, stating that the city can always come down on the amount, but can't go up. Councilmember Hunter stated he favors the scenario whereby Opus gets a 15% reserve capacity credit for external improvements. Councilmember Awada concurred. Mayor Egan stated that if the Council wants to do that, It should be so Indicated that that Is a firm figure, take it or leave It. Some discussion followed. Barry Warner then reviewed some streetscape options for the Yankee Doodle corridor. He reviewed some of the constraints when designing this plan, such as right-ofway imitations, county state aid clear zone requirements, broad median areas, lack of human scale, and that portions of the roadway will remain in tact. Some of the things they feel they can do to offset the constraints is provide a sense of scale, enhance the image of the corridor from a community standpoint, provide an identity with a timeless feel, and provide some seasonal interest. He reviewed boulevard plantings and discussion followed concerning elevated planters, using salt tolerant varieties and the types of trees to be used. Mr. Warner stressed the Importance of maintaining whatever plantings are put In. He also proposed an attractive bridge abutment treatment and the Inclusion of some decorative lighting. He reviewed some options for prominent intersection Improvements using colorful landscaping, pedestrian level fighting, low monumentation walls, ornamental fencing, signing, etc. He also suggested some signage at intersections that 02 EAGAN SPECIAL CITY COUNCIL MINUTES, NOVEMBER 14, 1985 PAGE 3 service primary driveways into some of the private sector areas. Costs were discussed, with the suggestion of a phased Implementation, starting with a project around $300,000. He reviewed cost estimates for various scenarios. He suggested $300,000 as an Initial Investment, and possibly use some seed money to work with the private sector on some partnerships and do the rest Incrementally. Counciimember Hunter supported the planting of boulevard trees and the bridge approach as part of Phase I. Councilmember Wachter expressed concern about salt damage to trees. He favors more use of decorative concrete, brick and stone. Mayor Egan stated he feels trees create more maintenance, but also create more of a charming feel to an area. Discussion followed concerning working with the private sector and developing some partnerships, and Community Development Director Reichert indicated an Informational meeting should be held. Councilmember Masin stated she feels benches are Important. Administrator Hedges reviewed some financing options for streetscape, such as the major street fund, the park trails fund, developer contributions, special service district, special assessments, internal tax Increment financing, and property tax mill levy and discussion followed concerning the various options. Mayor Egan stated he favors a special service district over special assessments. Counciimember Awada stated it will be between the park trails fund, Internal tax increment financing and property tax. Some discussion followed concerning what can be done with the private sector. Counciimember Hunter noted that the city needs something to get the momentum going. He feels the initial Investment should be funded entirely by the city, probably out of the park trails fund to give momentum to the streetscape Improvements. From there, private partnerships can be built. Counciimembers concurred. Mayor Egan expressed some concern about the entire ring road concept, noting that Apple Valley tried to do that and he doesn't feel it Is very effective. He wants to know how the design of this system will enhance the service In this area and In what ways it is better than Apple Valley's ring road system. Mr. Robinson reviewed some of the factors that will enhance transportation in the area and the unique aspects of these proposed improvements. REVIEW CENTRAL PARK OPTIONS Community Development Director Reichert reviewed the city's goals and vision for a central park to be used as a gathering place for community events. Upon reviewing the available areas in the city for this type of central park, the three options are the Unisys/Perron property; the Northwestern Mutual site; and the Municipal Center site. Parks and Recreation Director Vraa reviewed what could be done on the Municipal Center site and how it would fit with the city's goals and vision for a central park. He noted there are some significant slopes that limit what can be accomplished on the property. Some options In addition to a 60-70,000 square foot community center include a second sheet of Ice, additional parking, an arboretum, a trail to Patrick Egan Park, and a farmer's market. He noted, however, that it would be difficult to accomplish all of the Council's goals on this site. He noted, for example, that this site would not be conducive to large gatherings. Councilmember Wachter asked about obtaining some additional land from the library. Parks and Recreation Director Vraa noted there would be little land available from the library. Wachter also suggested a two story community center with solar energy panels on the south side of the building. Community Development Director Reichert noted that at least 400 additional parking spaces would also be needed for a community center. Community Development Director Reichert reviewed the Unisys/Perron property. She noted that the plan they are working on includes a Phase I that Included townhouses, assisted living, and a central park; and Phase II that would Include additional townhouses and commercial development. She noted that of the 35 acres of park area, 14 acres Is In the flood plain. Their dedication on the 80 acres would be 8, and with the credit for the flood plain, their dedication of good land would be 5.6 acres. She noted that the park would have room for a community center an outdoor pool, 600 parking stalls, an amphitheater and trails. Community Development Director Reichert then reviewed the possibilities for the Northwestern Mutual site in the event it becomes available. She reviewed an analysis that was done that would include a central park, golf course and driving range. She noted that there are some significant wetlands on the property. Some discussion followed concerning placement of the parking and drive areas. Parks and Recreation Director Vraa reviewed further uses for the property, Including farmers market, winter trails and fountains in some of the wetlands. EAGAN SPECIAL CITi COUNCIL MINUTES; NOVEMBER 14, 1995 PAGE 4 The Council concurred with direction to pursue acquiring the Northwestern Mutual site from the people who currently have an option on the property. Councilmember Awada suggested in addition that the city try to accommodate the needs of the prospective purchaser somewhere else in the city. Mayor Egan noted that he met with the prospective purchaser of this property, who acknowledged the city's power of condemnation, and indicated they would fake to cooperate with the city on developing a golf course on this property. He stressed the need for the city to work with them in the spirit of cooperation. Councilmember Wachter suggested the City Administrator start negotiating with them for this property, and Councilmember Awada reiterated the importance of helping them find other land. Mayor Egan concurred, stating he feels this is a great opportunity. Councilmember Wachter stated he feels this property Is more feasible than the Unisys property. Some discussion followed. Community Development Director Reichert noted that on the Unisys site, the residential development constrains the central park use somewhat. The city may need to purchase the Perron property to trade land for the central park, but the owners feel it Is very valuable because it is guided R & D, so the city may be paying top dollar and then turn around and sell it for residential prices. The Perron seem willing to hold on to the property for top dollar, so the city would have to go through condemnation. She also pointed out that the city has very limited corporate office sites available. She also noted that to do a park on this property is dependent on getting great cooperation from the corporations that have the parking lots surrounding the property. She reviewed the land use Issues, and noted that the Council needs to decide what the appropriate land use is for this area. The property owners would Ike an answer because they would Ike to start developing the property. Councilmember Wachter stated he would hate to lose the property around the pond; however Awada noted that the Northwestern Mutual parcel would take 200 acres off the commercial property tax rolls. Councilmember Hunter stated he doesn't feel the Council can give an answer on the Unisys site until it is determined what will happen on the Northwestern Mutual property. Mayor Egan concurred. Councilmember Hunter added that the Council needs to look at the impacts on Yankee Doodle Road. Considerable discussion followed concerning how the Council wants to proceed relative to the Unisys/Perron property and Northwestern Mutual property and whether residential is appropriate for the Unisys/Perron property. Councilmember Awada stated she would only consider townhomes, and only on a small part of the property, and only if the city develops that area as a park. Councilmember Wachter stated he Is not ready to make a decision on the Unisys/Perron property tonight. Administrator Hedges suggested the city contact the prospective buyers of the Northwestern Mutual property to get a feel for what direction that property will go, and will try to get more information to the Council on Tuesday. Some discussion followed. At this time, Administrator Hedges suggested that the Community Development update be postponed to a future work session. OTHER BUSINESS Community Development Director Reichert noted that she received a call today from the St. Paul Port Authority indicating that they have new Information relative to the Register Resale financing that in addition to the personal guarantees by the partners, Eastern State Bank Is willing to give the city a letter of credit that wouldguarantee half of the city's loan for five years. They would Ike to come to the next Council meeting for reconsideration. She asked whether the Council Is willing to reconsider this and if she should put it on the next agenda. Councilmember Wachter Indicated he would be willing to Osten to their argument. Councilmember Masin asked whether the Economic Development Commission has reviewed this. Community Development Director Reichert noted that Kirk Duholm of the Economic Development Commission did review it, but it didn't come before the entire commission due to time constraints. A consensus was reached that the Council is willing to have It come back on the next agenda. Councilmember Masin stressed that future requests should go before the Economic Development Commission. Councilmember Awada noted that this Is a philosophical question about public funds helping private business. Administrator Hedges reviewed some potential dates for a retreat with Carl Neu. He noted that Mr. Neu suggested having a day in January or February, and have him back for a day later In the year. Councilmember Wachter stated he feels he can stay more focused if it is two days In a row. Councilmember Hunter suggested Mr. Neu could come for a day, and the Council could continue on their own. The date preferred was January 25. EAGAN SPECIAL CITY COUNCIL MINUTES; NOVEMBER 14, 1995 PAGE 5 Administrator Hedges gave an update on a request by the Florins's for reconsideration of the Soderholm Addition plat, and noted that the City Attorney Is researching what the Council's options are. He noted that the basis for reconsideration Is new Information. Councilmember Awada suggested that the Florine's be contacted and told that. Mayor Egan noted that the Florine's have contacted an attorney and are asking for a 30 day moratorium, and If it Isn't granted, they will seek an injunction from the district court. Some discussion followed concerning notification requirements. Mayor Egan noted that the Flonne's have been at every meeting that this plat was discussed and had ample opportunity to raise the Issues at that time. They did nothing, and now that the final plat Is approved and signed, they are requesting a 30 day moratorium. Councilmember Hunter asked about a response to John Young's letter regarding the hiring of a public relations firm. Administrator Hedges noted that a draft has been written, but it hasn't been sent yet. Mayor Egan noted that hiring a public relations firm has been talked about for the last 4-5 years. This is nothing new. Councilmember Wachter expressed his disappointment over the verbal abuse the City Administrator was subjected to in a recent meeting with a business person that was held in front of other citizens. He feels this type of behavior Is abhorrent and should be stopped. Councilmember Hunter stated he feels the directive should be given that whenever a citizen Is verbally abusive that the City Administrator be able to walk out or hang up on that person. Councilmember Wachter stated he feels a letter should be written to him from the Council requesting an apology. Councilmember Hunter concurred, and suggested the letter be addressed to the Small Business Association. Some discussion followed. The meeting adjourned at 10:10 p.m. DLP November 14, 1995 Date City Clerk